Price rise for gas boilers on way in France
Tax rate change is expected to cost affected households an average of €250
The average cost for purchasing and installing a new gas boiler is around €5,000
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The VAT rate for ‘very high energy performance’ gas boiler installation and equipment is set to rise from 5.5% to 10% on January 1, 2025, it has been announced.
This means the least polluting gas boilers, which are still more polluting than alternatives such as heat pumps, will be taxed at the same rate as other gas boilers.
The aim is to encourage residents to convert to more environmentally-friendly alternatives.
If you already have a gas boiler or you have signed a quote and made a deposit before January 1, the change will not affect you.
On average, the cost for installing a new ‘very high energy performance’ gas boiler is around €5,000, meaning that the customer will have to pay an extra €250.
The rate was originally planned to increase to 20% in the projet de lois finances for 2025 (the budget bill) but the entire bill was rejected. Michel Barnier was then forced to resign as prime minister as result of a motion de censure and his government was disbanded.
Read more: Centrist François Bayrou announced as new French prime minister
The VAT rate may yet change again in the new 2025 budget when or if it is passed in parliament in the first months of 2025.
Around 390,000 gas and fuel boilers were sold in 2023, according to data from the Uniclima, the thermal and refrigeration industries union.
The VAT rate will be applied to the equipment needed in the case of repairs.
